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Monday, November 7, 2011

Tax Rates during the Fabulous Fifties

Did Rupert Murdoch and his commentators at Fox News think we were all a bunch of communists during the 1950s when we used to tax the rich, the banks, and large corporations? Why is it that
now in 2011 they call this "punishing job creators for their success"?

WERE THE RICH BEING PUNISHED FOR THEIR SUCCESS IN 1955?

Why do the Republicans and the Tea Party fanatics keep saying that taxing the rich is
an evil way to "redistribute the wealth"? Why do they equate fair
taxation to Socialism or call tax hikes "job killers"?

WAS IT CONSIDERED SOCIALISM IN 1955 WHEN THE REPUBLICAN DWIGHT D. EISENHOWER WAS
OUR PRESIDENT? WERE JOBS BEING "KILLED"?

The Republicans and the Tea Party fanatics keep complaining that taxes are
too high, and they want to either lower them more than George W. Bush did, or
eliminate them completely - - thereby FORCING the de-funding of Social
Security and Medicare. That's their plan. But in reality, taxes
today are already historically low! It would be irresponsible and reckless
to lower them more than they already are now.

After World War II and the Korean War we had the Fabulous Fifties. Thousands of young servicemen
had returned to America to pick up their lives and start new families in new homes with new jobs. With an energy never before experienced, American industry expanded to meet peacetime needs. Americans began buying goods not available during the war, which created corporate expansion and jobs. Growth
was everywhere. The baby boom was underway.

Color TVs were being made and the remote was invented (and transcontinental television),
DNA was discovered, the first atomic submarine was launched, McDonald's
Corporation was founded, NASA was founded, The Sound of Music opened on
Broadway, the AFL-CIO was established with 15 million members, the Federal Highway Act marked the beginning of the interstate highway system, Explorer I
was the first U.S. satellite to successfully orbit the earth, and the first domestic jet-airline passenger service was
started by National Airlines. Computers and the internet were also first
being developed in the 1950s.

But back then we used to tax the rich at a 91% top marginal rate for income
taxes, and we taxed corporations and banks 52% on their profits. Was this
socialism? Were we unfairly taxing the wealthy and big business? Were we "punishing
the job creators for their success"? Were we unjustly "redistributing
the wealth"? Why do the Republicans equate fair taxation
to Socialism or call tax hikes "job killers"?

In the 1950s people could afford single family dwellings and suburbia was born. A small suburban community called
Levittown was built. American education underwent dramatic and world shattering changes.

Fifties clothing was conservative. Men wore gray flannel suits and women wore dresses with pinched in waists and high heels. French fashion designers such as
Dior, Chanel and Givenchy were popular and copied in America.
We had fashion successes like Bill Blass and his blue jeans.

Families worked together, played together and vacationed together at family themed entertainment areas like
Yellowstone Park and the new Disneyland.

1955 Chevy

Drive-in movies became popular for families and teens. Cars were seen as an indicator of prosperity and cool-ness. Highways were built to take people quickly from one place to another, by-passing small towns and helping to create
shopping plazas and malls.

But back then we used to tax the rich at a 91% top marginal
rate for income taxes, and we taxed corporations and banks 52% on their
profits. Was this socialism? Were we unfairly taxing the wealthy and big business?
Were we "punishing the job creators for their success"?
Were we unjustly "redistributing the wealth"? Why
do the Republicans equate fair taxation to Socialism or call tax
hikes "job killers"?

We liked watching and dancing to Dick Clark's American Bandstand. When the 1950s are mentioned, the first type of music to come to most people's minds is rock 'n roll.
Popular artists such as Bill Haley, Elvis Presley, and Jerry Lee Lewis were on
the radio. There was Buddy Holly and Ritchie Valens - the influence of these early rockers
had been felt in popular music worldwide.

But music in the fifties was more than just rock 'n roll. Crooners like Nat King Cole, Frank Sinatra, Perry Como and Dinah Shore were all
popular too. Many of these singers were the idols of the rockers who developed the new sounds.
They did shows at the casinos that were blossoming in old Las Vegas.

TV shows were born: The Honeymooners, Lassie, Father Knows Best, The Adventures of Ozzie and Harriet,
I Love Lucy, The Ed Sullivan Show and the Johnny Carson Show; and daytime soap operas like Guiding Light.

But back then we used to tax the rich at a 91% top marginal rate for income
taxes, and we taxed corporations and banks 52% on their profits. Was this
socialism? Were we unfairly taxing the wealthy and big business? Were we "punishing
the job creators for their success"? Were we unjustly "redistributing
the wealth"? Why do the Republicans equate fair taxation
to Socialism or call tax hikes "job killers"?

All-American sports such as baseball and football gave opportunities for the rise of stars like Jackie Robinson, Roy Campanella,
Hank Aaron, Jim Brown, and Frank Gifford.

As television became more popular and available, other sports found a growing numbers of fans. College football was widely followed. Professional golf became very popular with stars like
Arnold Palmer and helped to create the idea that to succeed in business, men needed to play golf.

People watched the Olympics 1952 and 1956, and in part due to the Cold War,
when the rivalry between countries became very fierce. Sports like tennis, basketball and boxing were also popular in the fifties.
We had Wilt Chamberlain, Sugar Ray Robinson and Rocky Marciano.

How did this country, and all the corporations today (those that were born
and/or prospered in the 1950s), survive during those "higher-tax"
years? How did so many people become so rich during this time in our history,
and accomplish so much, if the tax rates were unfairly taxing the wealthy and
big businesses? In 1955, were we "punishing the job creators for their success"?
Were we unjustly "redistributing the wealth"?

Senator John Boehner was a kid during the 1950s, just like me. He and most
members in Congress are well aware of that time in American history. And just
like me, they saw this country prosper and thrive as they were growing
up...despite the higher tax rates. That was when our great middle-class had been
born and thrived.

They know very well that right now in 2011 we have a revenue problem, not
just a spending problem. Why do they keep denying that?

And ALL the Republicans know very well that when George W. Bush made
his tax cuts, it was the first time ever (in all of U.S. history) that the
United States engaged in any major war without ever raising taxes. Just the
opposite was true...taxes were drastically reduced, and primarily so the
uber-wealthy would benefit the most - - such as with capital gains taxes, which
have been at their historically
lowest level for the past 9 years!

So why are the Republicans deliberately strangling the tax revenues
that we need to keep a healthy and functioning government and economy? Haven't
their tax cuts done enough harm to this country and its people already over the
last 9 years? Haven't the rich been enriched enough? Can't we rebuild our
middle-class and repair our infrastructure now? Can't we begin to start making
America great again, instead of just creating a few more greedy millionaires?

I pity the younger generation today, for not having the opportunities that
once existed, and not being able to say that they grew up during a great time in
American history. Their stories will be more like that of my grant-parents, when
they grew up during the Great Depression.

Corporations are STILL making record profits, and CEO
pay is still going higher, as our wages decline. They now have $2
trillion sitting idle, that they don't even know what to do with,
and yet the Republicans STILL refuse to tax them. But even if we
were to roll back all the Bush tax cuts tomorrow (never mind, back
to the 1950's tax rate), and immediately ended both wars, it would
STILL take many years to recover. And if the Republicans have their
way, and for every day that goes by, this country will only slide
further and further into decline.

It doesn't matter what a corporation pays in taxes as compared to
GDP, or how it's compared to any other index of measure (to skew the
numbers), it's what they actually pay to the U.S. Treasury
after loopholes (aka "deductions") that matters most. And
for the last 25 years corporations have actually paid
historically low taxes.

While today some corporations may have paid the maximum rate of
35% (when it was over 50% in the 1950s), many others paid ZERO, with
the average being only 18%.

And because corporations have been paying a
low effective corporate tax rate for decades, that didn't keep
them from outsourcing jobs overseas for cheap labor, but rather, it
did enable them to pay very excessive CEO salaries...who only mostly
pay 15% in federal income taxes on their capital gains.

Blogster-at-Large

Bud Meyers writes about the economy, politics, Social Security, corporate outsourcing, labor statistics, the REAL unemployment rate, taxes and tax evasion, government and corporate corruption, and the plight of the long-term unemployed.